CA funding to generate $15.5B in new investments, 2,100 new jobs

As part of the California Jobs First initiative, Governor Gavin Newsom today announced the state has awarded $120 million in tax credits to eight companies. According to the plan, this initiative will generate more than 2,100 full-time jobs with an average annual salary of over $100,000 and bring in an estimated $15.5 billion in private investment over the next five years. 

Of the eight, two are based in Silicon Valley.

Paired Power, a commercial solar and battery energy storage system manufacturer, received a $3.5 million tax credit to expand its operations in Campbell as well as the Central Valley. 

Tau Motors received a $7 million tax credit to further its R&D capabilities in Redwood City as it continues to partner with leading automakers, suppliers, and industry to rapidly design and deploy advanced technologies across a wide range of platforms and powertrains. In exchange, they will create more than 150 new jobs and invest nearly $60 million. 

“California’s economy is the fifth largest in the world and we’re supporting workers and businesses as they reach success,” Governor Newsom said. “This funding will help businesses create good-paying jobs — from steel manufacturing in Kern County to sustainable lithium production in Imperial Valley — and support the state’s economic dominance for years to come.”  

The funding, from the Governor’s Office of Business and Economic Development’s (GO-Biz) California Competes program, is going to companies expanding their operations in California and supporting the industries that are the hallmark of the Golden State. 

EV battery supply chain

Lithium Valley is on track to become one of the world’s largest sources of lithium, the essential material for EV batteries – positioning California to be a global hub for battery production and a leader in securing a clean energy future. 

Controlled Thermal Resources received a $30 million tax credit to help construct a facility near the Salton Sea to sustainably extract lithium and other critical minerals from geothermal brine in Imperial County. 

In exchange for this tax credit, the company is expected to make capital investments of more than $14.7 billion and create nearly 450 new, full-time jobs in Calipatria and Imperial. 

Energy storage systems

Moxion Power, which develops mobile energy storage products and technologies that accelerate last-mile electrification, received a $25 million tax credit to expand its manufacturing capabilities in both Richmond and Los Angeles.

Collectively, Paired and Moxion will make nearly $130 million in capital investments and create more than 540 new, full-time jobs across California. 

Last month, Governor Newsom announced the creation of the California Jobs First Council focused on streamlining the state’s economic and workforce development programs to create more jobs, faster – including through the California Competes program. 

The California Competes Tax Credit was created in 2013 to help businesses grow and stay in California. In 2022, the program was extended for an additional five years with at least $180 million in tax credits available for allocation to businesses each year through 2028.  

To date, California Competes has awarded tax credits to nearly 1,200 businesses, creating more than 158,000 jobs, and resulting in $50.5 billion of private investment in the state. According to the Governor’s office California also has the most equitable tax system in the entire country, is first in the nation for new business starts, first for access to venture capital funding, and the number one state for tourism spending, manufacturing, high-tech, and agriculture.